Overall Company Strategy and the Operation Strategy

The operation strategy should be established in such a manner that it conforms with the overall company strategy.

The missions of various operations are decided on the basis of overall strategy in a rather diversified enterprise and it is very normal that its operation strategy is decided to accomplish these missions. The missions or the appointed tasks of operations are, e.g. “first of all strengthen the position in the market even if the issue of profit in this operation field has to be overlooked” or “increase the profit while restriction the investment” or “to become the main stay” etc.

In the case of failure to establish operation strategy through which the selected task of an operation can be accomplished, it becomes mandatory to study once again the validity of selected task itself. Consequently, the selected task of any operation in not to be decided from the top, i.e. through top down management. In most of the cases, it is decided through negotiation between the people, who decide the overall strategy for the company and those, who decide the operation strategy.

Further, the distribution of management resources is also decided by the head office along with the decision regarding the selected tasks of operations. The above mentioned PPMs works as a mean for arriving at this decision also. The resource distribution is also not decided unilaterally by the set of people to decide the overall strategy of the company. It is rather decided in most of the cases through discussion with those who establish the operation strategy.